Following a highly dynamic and lucrative year for the Education & Training sector in 2024, driven by growth in e-learning and technological integration, changing working patterns and a further adoption of workforce upskilling, we expect 2025 to present significant opportunities for further growth and development as the sector enters its next phase of consolidation. Against this backdrop we outline the M&A market trends in the sector, highlighting the key considerations that Education & Training business owners should consider to secure the attention of strategic and financial acquirors as we expect to see a further increase in deal activity in 2025.
- The Education & Training M&A market is expected to deliver a further increase in M&A activity in 2025. Well prepared Education & Training business owners looking to consider their options in 2025 should capitalise on the strong appetite from acquirors seeking premium assets in the sector.
- As investor confidence returns to the UK market, strategic acquirors and large multinational consolidators are re-entering the market, generating strong competitive tension in pursuing high quality assets and driving up transaction multiples in what remains a highly fragmented sector.
- Private equity investors remain attracted to the sector due to the high levels of income visibility generated from e-learning provisions and subscription-based billing models. With a strong investment track record and unprecedented levels of funding to deploy, 2025 will see strong appetite and competition from private equity.
- Despite a slight easing in 2024, critical sectors such as healthcare and engineering are continuing to face the burden of acute skill shortages across the UK going into 2025. As large corporates turn to reskilling and upskilling strategies, Education & Training providers with mandatory training provisions will be a key priority for acquirors and will command premium valuation multiples in 2025.
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